Product innovation and export strategy

Kevin Randy Chemo Dzukou (), Sabine Duvaleix and Karine Latouche
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Kevin Randy Chemo Dzukou: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: This paper analyses the relationship between innovation and export performance. More specifically, we highlight the effect of the introduction of new products on the quality and prices charged by firms in international markets. Based on Hallak and Sivadasan (2013)'s theoretical work, we develop a model to explain the mechanism underlying the relationship between innovation and product quality. Using a unique database of new product launches combined with data on production and trade in the French dairy industry, we tested this mechanism in several ways. Our results show that the export prices charged by the firms increase after the introduction of a new product in a given market. We also show that the projected quality of the new product increases after its introduction in a given market. This confirms the quality-upgrading effect of innovation at product level. These results are highly robust econometrically.

Keywords: New product introduction; Export prices; Quality upgrading; Quality differentiation (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-agr, nep-cse and nep-int
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04452985v1
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Published in Journal of Economics and Management Strategy, inPress, ⟨10.1111/jems.12579⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04452985

DOI: 10.1111/jems.12579

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